The government of Newfoundland and Labrador is giving Kruger‘s Corner Brook Pulp and Paper a $90 million loan.
The loan won’t kick in until new contracts are in place for all the union at the mill.
“Corner Brook Pulp and Paper is a key employer and a strong contributor to our economy. The mill is important not only to the west coast, but the entire province. Government has clearly stated that we will provide support only when negotiations for a new contract are concluded for all eight unions at the mill,” said provincial Natural Resources Minister Tom Marshall.
The loan will be used by Kruger to address challenges in the industry. Marshall said, “This loan will enable Corner Brook Pulp and Paper to become a low cost producer. Our investment will strengthen the company, which has been a long-standing, good corporate citizen in Newfoundland and Labrador. It will also help ensure the long-term security of our integrated sawmill operations which are the backbone of the sawmilling sector.”
The provincial government has invested $58 million in Corner Brook Pulp and Paper from 2004 to 2012 in various projects. This amount does not include Power Purchasing Agreement sales of $65 million which provides a source of revenue for the paper mill.
Marshall defends $90-million loan for Corner Brook paper mill (The Telegram)
Corner Brook Pulp and Paper gets $90M government loan (CBC)